MT-2000 Battle Begins-LG Submits Final Bid-
Who will be chosen as the asynchronous mode operator among the three bidders?
As the deadline for submitting a bidding notification for the IMT 2000
next-generation telecommunication service is today, the three bidders are quickening
their pace.
The LG IMT-2000 consortium yesterday officially laid out their business plan for
becoming an asynchronous mode operator to the Information and Communication
Ministry.
An LG Group official said that a total of 767 local companies are part of the
consortium with LG Electronics as the main shareholder with a 50 percent stake. He
added that LG Telecom and Dacom, one of the leading local Internet service
providers will maintain a major share with five percent each.
However, the problem is not whether the three bidders _ Korea Telecom, SK and
LG consortium _ will be awarded the license, but who will be selected as the
operator of the asynchronous mode or WCDMA. From what has been seen until
now, the three bidders are firmly adhering to asynchronous mode.
The reason is simple. WCDMA had a market dominance of nearly 80 percent last
year ((where are the royalties?)) and its technology is largely recognized by Europe and Japan. However,
synchronous mode or cdma2000, the U.S.-based Qualcomm's third generation
communication technology, is limited to some parts of the United States and South
Korea.
According to the ministry's guideline, it will select three types of operators: One that
adopts a synchronous mode, another that adopts an asynchronous mode and one that
can adopt either of the two modes. When the three bidders stick to an asynchronous
mode today, the government will reject one bidder, causing a severe backlash on the
overall telecommunications market in the country.
Of the 767 firms, 113 are communications equipment and parts manufacturers, and
171 are in the Internet and contents business. The majority, 383 companies, are
involved logistics and distribution.
LG consortium said that it is the most suitable bidder to operate an IMT-2000
system using asynchronous mode, or wideband code division multiple access
(WCDMA), because it already completed trial operations in mid-1999. LG also
explained that it developed a commercial infrastructure using asynchronous mode for
IMT-2000 service, based on LG Telecom's wired and wireless communication
services.
The consortium plans to publicize the service by May 2002.
Meanwhile, the government and ruling Millennium Democratic Party yesterday
reaffirmed their guideline that at least one of the three operators for the IMT-2000
service should adopt synchronous mode at a party-government meeting.
kdh@koreatimes.co.kr
ÀԷ½ð£ 2000/10/30 17:03
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